Open letter to sellers

At Bid on This our goal is to incentivise and reward clients who put business through the platform. We understand that working together we will have a stronger and more sustainable business – and for your part in that, we want you to share in the success.

We want to have the same goals as our customers, but rather than the traditional commission model, we are going to take it one step further, and ensure a prosperous company means significant rewards for everyone.
As a customer, the more sales that you achieve through the platform, the more shares you will receive. In order to make this business as successful as possible, we intend to give you up to 75% of the equity.
But, how will this actually work?
STEP 1: You start to sell through the platform
STEP 2: You make as many sales as you can until Oct 2017.
STEP 3: Based on level of total sales – we work out the size of the equity reward pie

The Pie Calculation
At £500k Average Annual Total Turnover (AAT)– 7.5% equity reward
Every Extra £100k = Extra 1.5% reward
Until 75% equity is given away
What does that look like?
At an AAT of:-
£500k–7.5% equity reward
£2m –30% equity reward
£4m –60% equity reward
£5m –75% equity reward

STEP 4: Based on what you’ve sold – we work out the size of your slice

The Slice Calculation
Your Average Annual Total Turnover as a %
of Total Annual Total Turnover
applied to the Equity Reward pot

What does that look like?
If you have produced £500k of sales
At 60% equity reward (£4m AAT)
You contributed 12.5% of the sales (500k/£4m)
Your equity is 7.5% of total (12.5%/60%)

What’s the small print?
The pie is calculated on average turnover, and your average annual contribution from launch until 30 Sept 2017. So we reward those that have contributed the most, over the longest time. The calculation which will be made on 30 September 2017. No customer has legal rights to the shares until that point.
In order to start-up the business, there is a shareholders loan which will need to be re-paid at some point.
Lastly, we have to reserve the right, at our discretion, to impose conditions or restrictions when we come to distribute these shares and we will have to comply with the requirements of securities law at that point.

Yours Sincerely,
Helen Parker
Founder and Chief Exec
Bid on This